Investment Oversight Advisory Commission 73rd Quaterly ReportFrom: City of Dubuque, Investment Oversight Advisory Commission
To: MEMBERS of the CITY COUNCIL of DUBUQUE
Regarding: Quarterly Report
In Accordance with Ordinance No. 50 -92 (3), Sec.2 -231, City code, the City of
Dubuque Investment Oversight Advisory Commission (IOC) respectfully submits the
73rd quarterly report.
The IOAC members met on July 27, 2011. The transactions reviewed through
June 30, 2011 appear to be in compliance with the Articles in the Investment Policy as
further noted below. Two representatives from First Community Trust (FCT) Mr. Dale
Repass and Mr. John Conner came before IOC for their report on funds managed for
the City. FCT presented the performance review through June 30, 2011. Mr. Repass
stated that FCT receives two audits per year and is deemed financially strong. Mr.
Conner reviewed performance and stated the City investments have outperformed the
benchmark in 25 of the 30 months in which the index has a negative return and
outperformed the benchmark 48% of the months in which the index has a positive
return. The standard deviation of returns has been .543% as compared to the return of
.643% for the Barclay's index of 1 -5 year Government bonds. FCT believes the reason
for the low returns is the timing of receiving additional funds to invest from the City.
FCT believes the economy will improve in the second half of the year, and that rates will
rise over the next 6 -12 months which will create a challenging environment for the City's
account. Mr. Conner concluded by stating that FCT practices are in compliance with
IOC policies.
Mr. TeKippe reviewed manager returns and fees for the year to date. Mr.
TeKippe noted that the City plans to sell two bond issues on August 1 which will result
in a total of $7.9 million of bond proceeds; he does not see foresee much interest from
the banks to invest these funds. Mr. TeKippe also noted that the City has not withdrawn
funds from the managed funds since 2004, but it may become necessary to draw out
some funds during the next year.
The next IOC meeting date was set for October 26, 2011 and the presenter will
be Dana.
Respectfully submitted,
Stephen Reisdorf
Acting Chairman
Investment Oversight Advisory Commission